India: Private-sector PMI ticks down marginally in September
October 4, 2021
The composite Purchasing Managers’ Index (PMI) produced by IHS Markit fell to 55.3 in September from 55.4 in August. Nevertheless, the PMI remained above the 50-threshold, indicating an expansion in business activity from the previous month.
The services PMI fell from 56.7 in August to 55.2 in September, as new orders and output increased at a softer clip. That said, on the manufacturing side, the PMI increased to 53.7 in September from August’s 52.3, due to healthier expansions in output, new orders, and headcounts were virtually stable.
Commenting on the latest PMI data, Pollyanna De Lima, economics associate director at IHS Markit, said:
“While forecasts of better demand in the year ahead supported business confidence regarding output, growth looks set to be constrained by rising inflation expectations. We saw a substantial decline in positive sentiment among service providers due to this factor, despite input cost inflation retreating in September.”
Author: Steven Burke, Economist